The chancellor has surprised businesses by revealing that he will not disclose any revisions to his capital gains tax (CGT) proposals until the New Year.
Small businesses were hoping that chancellor Alistair Darling would announce concessions to his plans to scrap CGT taper relief in parliament today.
Darling recently acknowledged that the scrapping of taper relief, which for many business owners will increase the tax bill on the sale of their businesses by 80%, had been ‘contentious’.
He stressed that he had been listening to public demand, sparking hopes among small businesses that concessions would be introduced for entrepreneurs selling their companies.
However, Darling surprised businesses today, who were expecting to hear his finalised proposal before Christmas, by revealing that no such announcement would be made until the New Year.
The British Chambers of Commerce (BCC) commented the news would leave many businesses unsettled over the Christmas period.
David Frost, director general of the British Chambers of Commerce (BCC), said:
“As the chancellor said that an announcement on capital gains tax was going to be made before Christmas, today’s statement has come as a surprise.
“There appears to be confusion in the Treasury about the reforms that they are planning to make, leaving businesses in a state of flux over their taxes.
“The reforms to CGT announced earlier this year are set to raise an extra £900m in tax from businesses, money that has already been earmarked for public expenditure. We are beginning to wonder if the Treasury can afford to make the necessary changes.”
© Crimson Business Ltd. 2007
